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    Question

    As per the recent (April 2024) change done to SGrBs, w

    hich of the following statements is NOT true about Foreign Institutional Investors (FIIs) investing in Sovereign Green Bonds (SGrBs)? Read the following paragrph and answer question no 19 & 20. Sometime back in one of the Union Budget, the FM announced the governmentโ€™s decision to issue SGrBs, a kind of government debt that specifically funds projects attempting to accelerate India's transition to a low-carbon economy. Funds raised through SGrBs are earmarked exclusively for green projects, ensuring transparency and accountability in fund utilization. SGrBs typically offer lower interest rates compared to Government-Securities (G-Secs), reflecting their alignment with sustainable development objectives. Issuance of SGrBs requires adherence to internationally recognised green standards and certification processes to ensure the credibility of funded projects.
    A FIIs investing in SGrBs help reduce pressure on domestic lenders, providing more capital for green projects. Correct Answer Incorrect Answer
    B The inclusion of FIIs allows more funds to be allocated towards India's 2070 net zero goals. Correct Answer Incorrect Answer
    C FIIs investing in SGrBs help attract more capital for non-green projects like fossil fuel extraction and nuclear power. Correct Answer Incorrect Answer
    D The investment by FIIs in SGrBs helps boost the sustainability goals of the Indian economy by reducing its carbon footprint. Correct Answer Incorrect Answer
    E FIIs' investments bring knowledge and expertise in green technology, benefiting India's green infrastructure projects. Correct Answer Incorrect Answer

    Solution

    FIIs' investments in India's SGrBs are directed solely toward green projects that aim to reduce the nation's carbon footprint. Non-green projects, such as fossil fuel extraction and nuclear power generation, are explicitly excluded from receiving funds through SGrBs, as these projects do not align with the goals of reducing carbon emissions and supporting sustainable development.

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